IT-399: New York State Depreciation Schedule (2024)
New York · NY DTF · Used for tax years 2024
Form IT-399 computes New York income adjustments for differences between New York depreciation and federal accelerated cost recovery system (ACRS) depreciation. It reports property details, depreciation deductions, and adjustments for the year property is disposed of.
Who files this form
Use Form IT-399 to calculate New York depreciation adjustments for qualifying property, other than IRC section 280F property:
- Property placed in service inside or outside New York State in tax years beginning after December 31, 1980, but before January 1, 1985, for which you claimed federal ACRS depreciation.
- Property placed in service outside New York State in tax years beginning after December 31, 1984, but before January 1, 1994, if you elect to continue using IRC section 167 depreciation rather than switch to IRC section 168 depreciation.
Part 2 calculates the adjustment when you dispose of property covered by those rules. If you switched eligible property to IRC section 168 depreciation, the disposition adjustment takes into account only the years before the switch.
For a partnership using ACRS, the partnership completes IT-399, not each individual partner. Partners report their shares of the adjustments on their personal income tax returns.
Do not use IT-399 for IRC section 168(k) property. See Form IT-398 instead.
What you'll need
Have the following information ready:
- Your name and identifying number, as shown on your return.
- For Part 1: each property's description, date placed in service, depreciable basis, depreciation method, useful life or rate, New York depreciation, and federal ACRS deduction.
- For Part 2: the property's description, disposition date and method, and total New York depreciation and federal ACRS deductions claimed.
- Information about any investment credit claimed on Form IT-212 for property listed in Part 2.
Submit an additional property schedule if needed.
If you filed a joint federal return but must file separate New York returns, complete one IT-399 using the joint federal amounts. Submit a schedule with each return showing each spouse's separate amounts as if separate federal returns had been filed, and explain any differences.
How to file
Enter your name and identifying number. Mark one box for the return you are filing: IT-201, IT-203, IT-204, or IT-205. Submit IT-399 with that return.
Complete Part 1 for depreciation and Part 2 for any applicable year-of-disposition adjustment. Transfer the amounts as follows:
- Part 1, column F total: Form IT-225, line 10, with subtraction modification S-210.
- Part 1, column G total: Form IT-225, line 1, with addition modification A-205.
- Part 2, line 5, if column D is larger than column E: Form IT-225, line 1, with addition modification A-206.
- Part 2, line 5, if column E is larger than column D: Form IT-225, line 10, with subtraction modification S-211.
For estates and trusts, these transfer rules apply to amounts reflected in federal distributable net income. For amounts not reflected there and reported on a fiduciary return, enter the amounts on IT-205, line 2, or IT-205-A, line 7, if allocation is required.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Using an ACRS recovery period for New York depreciation. Use the useful life or rate provided under IRC section 167. The depreciation method must also be allowed under section 167 as it stood on December 31, 1980.
- Depreciating land. Land is never depreciable.
- Reducing passive-activity adjustments because of federal loss limits. The required depreciation modifications use the full allowable federal depreciation amounts, even if federal loss deduction limits apply.
- Treating a switch to IRC section 168 as temporary or property-specific. Once you switch, you must use section 168 from that tax year forward for all subject property.
- Including excluded 1981 amounts in Part 2. For property placed in service during 1981, do not include ACRS depreciation claimed on the 1981 New York return in column D or on the 1981 federal return in column E.
- Overlooking investment-credit repayment rules. If property with an investment, retail enterprise, or research and development credit claimed on IT-212 is disposed of or removed from qualified use too soon, the difference between the credit taken and the credit allowed for actual use must be added to income tax in the disposition year.
Questions people ask
How do nonresidents and part-year residents complete IT-399?
Complete it as if you were a New York State resident for the entire year. Transfer the amounts from Parts 1 and 2 to Form IT-225.
How long can I claim New York depreciation?
You may claim the deduction until the property is fully depreciated or disposed of. Depreciation also ends when you take the property out of service or no longer use it for business or income production.
What counts as a disposition?
A disposition includes, but is not limited to, a sale, exchange, transfer, or obsolescence.
What is depreciable basis?
It is the property's cost or other basis, reduced by the part you elected to amortize or expense under IRC section 179 and by any federal investment credit subtracted when calculating the asset's federal unadjusted basis.